14 DAY TRIAL // We’ve known for a while that Netflix was planning to bet big on ads in the long-term, and now it looks like the debut of this new tier is just around the corner.
While for many people out there having ads on Netflix is a big no-no, the approach might actually make a lot of sense.
Here’s precisely why.
The cheapest subscription right now costs $9.99, and you get the standard streaming quality with no high definition. The first upgrade that brings HD streaming raises the price to $15.99, while the 4K support can be had for $19.99.
These are the prices subscribers must pay every month, so it goes without saying that having a cheaper tier would definitely come in handy.
More expensive than expected
This is why Netflix is working on a subscription plan with ads. The company would essentially be able to reduce the subscription price as long as users agree to watch ads, and according to a report from Bloomberg, the new tier could go live as soon as this year.
But more importantly, the new ad-supported tier would actually end up being a lot more expensive than many people hoped it would be in the first place.
While the initial reports on the matter suggested the new plan wouldn’t cost more than $5, it now looks like the cheapest it can get is $7. Even worse is that Netflix could end up charging no less than $9 for the subscription, though it’s hard to believe customers wouldn’t be willing to pay $1 extra to get rid of the ads.
As it turns out, Netflix is exploring several approaches, but at this point, it looks like the company wants to show 4-minute ads before and during programs, with no plans to also show the ads at the end of the content.